Overview
Pursuant to Regulation Systems Compliance and Integrity (Reg SCI) Rule 1004, Cboe BYX Exchange, Inc. (BYX), Cboe BZX Exchange, Inc. (BZX), Cboe EDGA Exchange, Inc. (EDGA), and Cboe EDGX Exchange, Inc. (EDGX) Rule 2.4, Cboe Exchange, Inc. (Cboe Options) and Cboe C2 Exchange, Inc. (C2 Options) Rule 5.24, BYX, BZX, EDGA, EDGX, Cboe Options, and C2 Options (collectively, the "Exchange(s)") are each required to establish standards for the designation of those participants that the respective Exchange reasonably determines are, taken as a whole, the minimum necessary for the maintenance of fair and orderly markets in the event of the activation of the Exchange's business continuity and disaster recovery plans and designate participants pursuant to those standards.
Pursuant to Cboe Futures Exchange, LLC (CFE) Rule 513B, CFE Trading Privilege Holders are obligated to connect to CFE's disaster recovery systems and participate in CFE and industry business continuity-disaster recovery testing to the extent required by CFE.
Designated Members and Designated Trading Permit/Privilege Holders ("Designated Participants") are required to participate in testing of the respective Exchange's business continuity and disaster recovery plans.1
The next mandatory test is Saturday, October 24, 2026. The test is being conducted in coordination with other market centers, as part of the annual SIFMA/FIA industry test and in support of Reg SCI and CFE requirements. Information on Designated Participant requirements for this test, which include completing at least two (2) executions on each designated Exchange market, as well as the test schedule and scripts, are detailed in this document.
Please note that under BYX, BZX, EDGA, and EDGX Rule 5.1 and Cboe Options and C2 Option Rule 8.16(e),2 Members are required to establish, maintain, and enforce written supervisory procedures designed to assure compliance with the requirements of applicable securities laws and regulations and applicable Exchange Rules, including mandatory testing requirements. Should a Designated Participant fail to supervise and/or participate in the mandatory testing, as required under BYX, BZX, EDGA, and EDGX Rule 2.4, Cboe Options and C2 Options Rule 5.24, or CFE Rule 513B, such failure may result in disciplinary action against the Member.
1 Where applicable, Members and Trading Permit/Privilege Holders ("TPHs") are collectively referred to herein as Members.
2 Chapter 8 of the Cboe Options Rulebook is incorporated by reference into Chapter 8 of the C2 Options Rulebook.